1)      The Government has been studying possible improvements to the CPF system to better meet our needs. Following extensive review and public consultation, the CPF Advisory Panel has made the following recommendations:

2)      There will be a more flexible CPF system.

  • ·         For those turning 55 in 2016, instead of one CPF Minimum Sum, there will be three different levels of Retirement Sums to choose from.
  • ·         The amount that is set aside in the Retirement Account at 55 will determine the lifelong monthly payout received from 65.

Retirement Sum Options

Monthly payout for life

Basic Retirement sum  (with property[1]) $80,500 $650 – $700
Full retirement sum $161,000 $1.200 – $1,300
Enhanced Retirement Sum $241,500 $1,750 – $1,900
[1] Subject to a pledge/ charge


  • ·         Lump Sum Withdrawal: If you turn 55 after 2013 (members who turned 55 earlier were already able to withdraw more of their savings at 55 under the old rules), there will be the option to withdraw up to 20% of our Retirement Account saving at age 65, inclusive of the $5,000 that you can withdraw at age 55.  However, this means a lower monthly payout after you take out the lump sum.
  • ·         Put more savings in CPF LIFE: There will be the option to top up your CPF savings to the Enhanced Retirement Sum to receive a higher monthly payout.
  • ·         Start payouts later: You can choose to start receiving payouts later, up to age 70, to receive a higher monthly payout.

3)      As such, Singaporeans should consider how much we would need in retirement and ask ourselves how much monthly payout we would like to have. For example:

  • ·         If we want to receive $1,200 for life, we will need to set aside the Full Retirement Sum of $161,000.

4)      Singaporeans should also consider saving more in CPF as it allows us to enjoy a higher interest rate that is guaranteed and risk free. For example:

  • ·         If you have $80,000 at age 55 and leave it in CPF to earn interest, this amount can grow to $124,000 or so by the time you reach 65.

5)      There is also more assurance for CPF members:

  • ·         To help you plan for retirement earlier, your Basic Retirement Sum will be made known to you ahead of time.
  • ·         For members turning 55 between 2017-2020, the Basic Retirement Sum for each year will be increased by 3% from the previous year.

6)      With these enhancements, rather than a one-size-fits-all approach, Singaporeans will now have more options andgreater flexibility to decide what is needed for retirement. This will give greater assurance and peace of mind when preparing for retirement.

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